Hongda Electronics redeems wealth product, generating income from idle funds

Zhuzhou Hongda Electronics Corp announced the redemption of a "Yuntong Wealth" regular-type structured deposit with a 60-day term. The product, managed by Bank of Communications, was purchased with 10,000,000 yuan of idle raised funds and matured on November 18, 2025, yielding a profit of 24,660 yuan. This redemption aligns with the company's strategy to utilize idle capital for wealth management within approved limits.

The company's board and supervisory board previously approved the use of partially idle raised funds, up to 400,000,000 yuan, for purchasing highly secure, liquid, and principal-protected wealth management products. Additionally, up to 1,500,000,000 yuan of idle self-owned funds could be used for similar low-risk products. These investments can be rolled over for periods not exceeding 12 months.

Over the past twelve months, prior to this announcement, Hongda Electronics and its subsidiaries have engaged in several other wealth management transactions using idle raised funds. These include investments in "Yuntong Wealth" regular-type structured deposits with 90-day and 92-day terms, totaling 27,000,000 yuan and 50,000,000 yuan respectively, and another 60-day term product worth 10,000,000 yuan. All these prior investments were also principal-protected, floating-income products and have since been redeemed upon maturity.